Top DOJ Official Todd Blanche Shut Down Crypto Enforcement While Holding Crypto Assets

Before Todd Blanche could be confirmed as the second-highest official at the Justice Department, he had to satisfy the concerns of ethics officials.

Blanche, President Donald Trump’s personal attorney during his New York criminal trial last year, was a cryptocurrency investor with holdings of between $159,000 and $485,000, records show.

To prevent possible violations of the federal conflicts of interest statute, Blanche promised to dump his digital assets no later than 90 days after his Senate confirmation in March, according to his government ethics agreement. He also pledged not to participate in any matter that could have a “direct and predictable effect on my financial interests in the virtual currency” until his Bitcoin and other crypto-related products were sold.

But about a month into the job — before divesting — Blanche issued a memo that ordered an end to investigations into crypto companies, dealers and exchanges launched during President Joe Biden’s term. He also eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes. And his memo said the Justice Department would assist Trump’s crypto working group of experts and Cabinet members that went on to issue a list of recommendations aimed at making the United States the global leader in digital coins.